How many people buy gift cards here?

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How many people buy gift cards here?

Postby Money card » Sun May 06, 2012 8:48 pm

We all buy gift cards at one time or another, whether it be Christmas or somebody's birthday,
parent's wedding anniversary, Mother's Day, fathers day, secretarial administration day, boss' day.

As we all know American Express, Visa , Mastercard and Discover have fees ranging from $3.00 up to 4.95.

So what I'm wondering for all occasions, how many gift cards does everyone buy that are for the stores, restaurant chains, as well as local merchant. Example - Buddys Sports Corner, JCP, Pasta Couiccine, Ruby Tuesdays.

VS

How many American Express, Visa, Mastercard or Discover gift cards does everyone purchase?

I buy quite a few gift cards:
  • Barnes and Noble gift cards
  • an occasional Banana Republic
  • 1 Coldwater Creek
  • a few Costco
  • Buffalo Wild Wings
  • 1 Pasta Couicciane
  • a couple Lord&Taylor
  • 1 Origins
  • a couple Bare Essentials
  • a couple Gap
  • 1 Home Depot
  • a couple Kohls.

I have never purchased a Visa, Mastercard or Discover gift card. But I did purchase 4 American express gift cards.

It makes me kind of wonder if somebody can purchase well over ten gift cards, why do American Express gift cards come with fees ranging from 3.00 up to 4.95?

The only store I had a problem with was Coldwater Creek. Has anybody else this year bought a gift card for a store and then later on you found out the store went out of business in that particular location?

3 of the 4 American Express gift cards I purchased were the end of the year, so they were trying to get rid of some, so they took the service fees off but charged me a shipping and handling fee. But when you go into the post office, Walmart and Shoprite, the concierge booth in the Malls, all have fees even if you use your American Express.

Why do American express, Visa, Mastercard and Discover gift cards have fees?

Which type gift cards does everyone purchase more - from stores/restaurants or from the big 4 credit card companies
?


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Postby PlatinumAMEX94 » Mon May 07, 2012 6:52 pm

Gift cards have fees because they are processed as credit cards and run over the credit card networks. They operate the same as a regular credit card in terms of logistics. Gift cards, like credit cards are out to make money. Those little plastic cards cost someone to print, distribute and sell.

You forgot the biggest gift card issuer of them all, Best Buy. I happen to know that Best Buy banks on a large percentage of their revenue at the end of the year on gift card sales, which have a medium redemption rate. Like all companies, Best Buy collects the funds for the card and hopes that the receiver never uses/redeems it. Best Buy already got their money. The department store cards you list are too specific of demographics, where as a Best Buy gift card anyone can buy a movie, game, whatever that appeals to all audiences.
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Postby PopiLopi » Mon May 07, 2012 7:40 pm

I rarely buy gift cards, only for relatives in another state because is easier to mail a gift card than an actual present. When i do buy them is usually for JcPenney, Kohl's, Forever 21 and TJMaxx... Those I the stores the receivers love to shop at.

You might say I'm cheap, but when you buy people gift cards I feel I spend more money than I should specially during the holidays (maybe my family is too big). You can buy someone a item on sale for less than $20, but if you're gonna give a gift card it should be at least $25... Add $25 for each aunt, uncle, cousins, and you'll spend the big bucks!
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Postby Money card » Mon May 07, 2012 9:58 pm

PlatinumAMEX94 wrote:You forgot the biggest gift card issuer of them all, Best Buy.


No I didn't forget Best buy, I just don't purchase Best Buy gift cards for coworkers or family members. I buy Barnes and Noble, Costco gift cards for c workers and Buffalo Wild Wings and Banana Republic for family. plus the other places.

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Postby Money card » Mon May 07, 2012 10:14 pm

You might say I'm cheap, but when you buy people gift cards I feel I spend more money than I should specially during the holidays (maybe my family is too big). You can buy someone a item on sale for less than $20, but if you're gonna give a gift card it should be at least $25... Add $25 for each aunt, uncle, cousins, and you'll spend the big bucks!
I WOULDN'T SAY YOU'RE CHEAP, I WOULD SAY YOU'RE VERY SMART.

If American Express, Visa, and Mastercard realized they loose money when somebody like you purchases a store gift card. I wonder how they feel? Knowing that we can use their gift cards all over the place but we choose to buy cards with no fees?

Even if we purchase a gift card with their card, they just make around 3-4% of the transaction pending upon the merchant and credit card.

I think you're smart for buying store gift cards.

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Postby DavidNY » Tue May 08, 2012 11:41 am

If Chase Freedom gives 5% off groceries, and gift cards are sold at the grocery store, that's 5% off gift cards.

That could be a good deal as long as there's no premium for buying the cards.

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Postby Money card » Tue May 08, 2012 9:20 pm

Hey Dave I've seen gift cards in grocery stores. If you're not buying a Mastercard, Visa or American Express gift card there's no premium.

However you have to buy what's on the card, so let's say there's 50.00 on a Red Lobster. You can't purchase a 25.00. It's whatever amount is on the gift card.

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Postby agp » Thu May 17, 2012 2:19 pm

I've never bought gift cards for anyone (including myself). If I want to buy you a present, I probably know you well - if I know you well, I will know what to get you. Besides, there are too many asterisks associated with gift cards.
I have gotten gift cards though, and when I do, I just ask my friends/family to see if anyone needs it and is willing to swap me cash for the card.

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Postby DavidNY » Thu May 17, 2012 3:02 pm

Money card wrote:Hey Dave I've seen gift cards in grocery stores. If you're not buying a Mastercard, Visa or American Express gift card there's no premium.


If I don't hit my quarterly max for groceries on the Chase card I can pick up an grocery "gift card" for the difference. I could also get an Amazon card, but I think the grocery card will get used up sooner.

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Postby Money card » Sat May 19, 2012 9:04 pm

agp wrote:I've never bought gift cards for anyone (including myself). If I want to buy you a present, I probably know you well - if I know you well, I will know what to get you. Besides, there are too many asterisks associated with gift cards.
I have gotten gift cards though, and when I do, I just ask my friends/family to see if anyone needs it and is willing to swap me cash for the card.


you've never bought a gift card for a family member that lives in a different state from you. example your in New York and there in Chicago? Christmas. you never bought a gift card for your boss for bosses day?



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